The Analytical Overview of the Main Currency Pairs on 2018.04.18

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.23794

Open: 1.23708

% chg. over the last day: -0.06

Day's range: 1.23585 – 1.23824

52 wk range: 1.0571 – 1.2557

Yesterday, the EUR/USD currency pair held a round level of 1.24000, which caused a corrective movement. Optimistic data on the real estate market and the volume of industrial production in the country supported the US dollar. At the moment, the EUR/USD quotes are consolidating. The key range is 1.23450-1.23800. The trading instrument has the potential for further correction. Positions must be opened from the key levels.

The news feed on 2018.04.18:

- Consumer price index in the Eurozone at 12:00 (GMT+3:00).

We also recommend paying attention to the speeches of the FOMC representatives.

Indicators do not send accurate signals. The price has fixed between 50 MA and 200 MA.

The MACD histogram is near 0 mark.

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which signals to sell EUR/USD.

Trading recommendations

Support levels: 1.23450, 1.23000, 1.22600

Resistance levels: 1.23800, 1.24100, 1.24500

If the price fixes below the "mirror" support of 1.23450, the EUR/USD currency pair correction is expected. The movement is tending potentially to the round level of 1.23000.

Alternative option. If the price fixes above 1.23800, it is necessary to consider purchases of EUR/USD. The target movement level is 1.24100-1.24300.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.43367

Open: 1.42855

% chg. over the last day: -0.29

Day's range: 1.42700 – 1.43145

52 wk range: 1.2361– 1.4345

Yesterday, the GBP/USD currency pair moved away from local highs after the publication of an ambiguous report on the UK labor market. It should be recalled that previously the Bank of England was concerned about the weak growth of wages in the country. At the moment, the GBP/USD quotes are testing local support of 1.42850. The trading instrument is tending potentially to further reduce. We expect important statistics from the UK.

At 11:30 (GMT+3:00), the UK consumer price index will be published.

The signals of indicators are ambiguous. The price has fixed between 50 MA and 200 MA.

The MACD histogram is in the negative zone and continues to decline, which signals to sell GBP/USD.

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which also gives a signal to sell GBP/USD.

Trading recommendations

Support levels: 1.42850, 1.42200, 1.41500

Resistance levels: 1.43700

If the price fixes below the support level of 1.42850, further correction of the GBP/USD currency pair is expected. The movement is tending potentially to 1.42200-1.42000.

An alternative may be the growth of the GBP/USD quotes to 1.43400-1.43700.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.25649

Open: 1.25462

% chg. over the last day: -0.06

Day's range: 1.25462 – 1.25955

52 wk range: 1.2059 – 1.3795

The technical pattern on the USD/CAD currency pair is still ambiguous. At the moment, investors took a wait-and-see position before Bank of Canada’s decision on the interest rate. It is expected that the regulator will leave the key interest rate at the previous level of 1.25%. We recommend paying attention to the comments of the Central Bank representatives. Positions must be opened from the key levels.

At 17:00 (GMT+3:00), the Bank of Canada will announce its decision on the interest rate.

The signals of indicators are different. The price has fixed between 50 MA and 200 MA.

The MACD histogram began to rise and moved to the positive zone, which indicates a correction of the USD/CAD currency pair.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which gives a signal to sell USD/CAD.

Trading recommendations

Support levels: 1.25500, 1.25000

Resistance levels: 1.25850, 1.26200, 1.26750

If the price fixes above 1.25850, the USD/CAD currency pair correction is expected. The movement is tending potentially to 1.26200-1.26750. When following the positions, one should use a trailing stop.

An alternative may be the USD/CAD quotes decrease to the round level of 1.25000.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 107.109

Open: 106.993

% chg. over the last day: -0.08

Day's range: 106.987 – 107.386

52 wk range: 104.56 – 114.74

At the moment, the "bullish" sentiment is prevailing on the USD/JPY currency pair. The trading instrument is testing local resistance of 107.350. The nearest support is at the level of 107.150. Demand for the US dollar began to recover. Further growth of the USD/JPY quotes is not excluded. We recommend paying attention to the US government bonds yield.

The news feed on Japan's economy is calm.

The price has fixed above 50 MA and 200 MA, which indicates the power of buyers.

The MACD histogram is located in the positive zone and above the signal line, which gives a strong signal to buy USD/JPY.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which indicates a decrease in the USD/JPY quotes.

Trading recommendations

Support levels: 107.150, 106.900, 106.700

Resistance levels: 107.350, 107.600, 107.750

If the price fixes above the resistance level of 107.350, further growth of the USD/JPY is expected. The movement is tending potentially to 107.600-107.750.

Alternative option. If the price fixes below the support level of 107.150, it is necessary to consider sales of USD/JPY. The movement is tending potentially to 106.900-106.700.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.